If a person sells all his shares and also resigns from the board of director he will still be considered as promoter of the company and in MOA and AOA his name will remain as it is.
But after resignation he will not be liable for the activities of the company as director.
Please also advice if Promoter wants to resign as a Promoter of the Company but he holds the shares of the Company. can he resign? and if he resigns then how his shares will be treated in the shareholding pattern?
15 November 2011
Hey preeti you are getting me wrong. By resignation a Promoter will not be liable as director only. Life time he will be considered as promoter of the company.
For example Reliance Industry Limited. For Reliance Dhirubhai Ambani is no more today and his family has divided his business. But Mr. Dhirubhai Ambani will always be considered as promoter of the Reliance.
So we can say that once a promoter is always a promoter though by resignation as director he will not be liable as director.
16 November 2011
thanks RG, but if you please have any case law on that...please let me know!!
see in our Company there are three Promoter group.2 are families and one is body corporate. now one family wants to resign as a Promoter and they have already sold their shares by inter se transfer to one of the promoter. and they dont want to a Promoters of the Company at all. now as u said ...once a promoter is always a promoter...then whether the abovementioned situation is possible.. as even in takeover code the definition of PROMOTER says Promoters are.....whose name is written in prospectus ior shareholding pattern which is filed later...then what is the meaning of it?
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